Wrap Text
Reviewed Condensed Consolidated Interim Financial Information for the Six Months Ended 30 June 2015
WESIZWE PLATINUM LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2003/020161/06)
JSE code: WEZ ISIN: ZAE000075859
(the “Company” or “Wesizwe”)
REVIEWED CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION
FOR THE SIX MONTHS ENDED 30 JUNE 2015
Highlights
- Both main shaft and ventilation shaft are at 770 meters below
surface, with intersections of the Merensky and UG2 on each shaft,
and channel sampling and analysis on both reefs from both shafts.
- The two shafts have establish levels 72L & 77L and flat
development.
- Commenced with a bulk sampling program with Mintek and 280 tonnes
of reef from Merensky and UG2 delivered. Test results will be
reported in September 2015.
- Commenced the inquiry process for the process plant EPCM and the
order placement is planned for September 2015.
- Third drawdown of US$100 million on the US$650 million project
loan from China Development Bank (CDB) took place in July 2015.
Cash on hand as of 30 June 2015 is R624 million.
- Established a dedicated Wesizwe Technical team focusing on
continuous improvement exercises for all project areas looking at
process redesign, new technology and global best practices,
tapping into the technical expertise of Jinchuan Limited who forms
part of the majority shareholder consortium.
- Completed the Mine Operational Readiness plan and commenced with
labour plan resourcing of critical positions.
- Commenced with second phase for all surface installation and
ancillaries for various structures including the permanent
materials stores, jigging shed and water storage dams.
- Brought forward the procurement of all critical items needed for
main shaft commissioning with deliveries of the first batch of
shaft steel, including bunton sets, and shaft electrical cable of
11km amongst others.
- Services projects are on track and progressing well.
- Commenced the Phase 2 power supply program with Eskom to be
commissioned in Q2 2016.
- The water programme for permanent supply well underway with
first supply to be commissioned in November 2015.
- Following the completion of the feasibility studies, process is
underway for the Phase 1 construction of the Mine Housing
Program.
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Six Six Year
months months ended
ended ended December
June 2015 June 2014 2014
Note Reviewed Reviewed Audited
R’000 R’000 R'000
ASSETS
Non-current assets 5 441 573 4 681 039 5 050 965
Property, plant and
equipment 6 4 644 680 3 598 472 4 120 176
Intangible assets 7 252 - 7 448
Available-for-sale
financial asset 7 628 000 - 788 700
Investment in equity-
accounted investee 8 - 920 926 -
Restricted cash 9 161 641 161 641 134 641
Current assets 694 381 407 725 1 129 069
Other receivables 58 351 28 164 25 912
Taxation receivable 6 676 4 363 4 363
Restricted cash 9 5 700 611 32 700
Cash and cash equivalents 623 654 374 587 1 066 094
TOTAL ASSETS 6 135 954 5 088 764 6 180 034
EQUITY AND LIABILITIES
Capital and reserves 3 257 780 3 620 651 3 383 807
Stated capital 10 3 425 544 3 425 544 3 425 544
Available-for-sale
financial asset reserve (108 152) - 22 581
Retained
earnings/(accumulated
loss) (59 612) 195 107 (64 318)
Non-current liabilities 2 740 334 1 345 688 2 771 950
Deferred tax liability 334 238 264 865 362 218
Interest-bearing
borrowings 2 364 931 1 047 526 2 310 114
Mine closure and
environmental
rehabilitation obligation 15 41 165 33 297 39 618
Current liabilities 137 840 122 425 84 277
Interest-bearing
borrowings - 20 841 -
Trade and other payables 18 137 840 101 584 84 277
TOTAL EQUITY AND
LIABILITIES 6 135 954 5 088 764 6 180 034
CONDENSED CONSOLIDATED STATEMENT OF PROFIT AND LOSS AND OTHER
COMPREHENSIVE INCOME
Six
Six months Year
months ended ended
Note ended
June December
June 2015 2014 2014
Reviewed Reviewed Audited
R’000 R’000 R'000
Administration expenditure (100 125) (82 765) (165 634)
Project related expenses
capitalised 84 919 67 998 133 839
Share of profit/(loss) of
equity- accounted investee 8
(net of tax) - 176 (194)
Loss on scrapping of
property, plant and
equipment - - 111
Net operating costs (15 206) (14 591) (31 878)
Loss on adjustment of
interest in equity-
accounted investee - - (159 556)
Finance income 32 080 28 059 56 413
Finance expense (49 495) (29 733) (69 817)
Net foreign exchange loss (134 867) (5 380) (199 935)
Finance costs capitalised 174 978 18 448 234 385
Net finance income 22 696 11 394 21 046
Profit/(loss) before tax 7 490 (3 197) (170 388)
Income tax expense 11 (2 784) (582) (92 816)
Profit/(loss) for the
period 4 706 (3 779) (263 204)
Other comprehensive income
Items that are or may be
reclassified subsequently
to profit or loss
(Loss)/gain on fair value
movements of available-for- 7
sale financial asset (160 700) - 27 700
Tax on other comprehensive
income 29 967 - (5 119)
Total other comprehensive
income (130 733) - 22 581
Total comprehensive loss
for the period (126 027) (3 779) (240 623)
Basic and diluted 19
earnings/(loss) per share 0.29 (0.23) (16.17)
(cents)
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
(Accumu-
lated
Stated Available loss)/
/ share -for-sale retained
capital reserves earnings Total
R’000 R’000 R’000 R’000
Balance at 1 January
2014 3 425 544 - 198 886 3 624 430
Loss for the period - - (3 779) (3 779)
(3 779) (3 779)
Balance at 30 June 2014 3 425 544 - 195 107 3 620 651
Other comprehensive
income - 22 581 - 22 581
Loss for the period - - (259 425) (259 425)
- 22 581 (259 425) (236 844)
Balance at 31 December
2014 3 425 544 22 581 (64 318) 3 383 807
Other comprehensive
income - (130 733) - (130 733)
Profit for the period - - 4 706 4 706
- (130 733) 4 706 (126 027)
Balance at 30 June 2015 3 425 544 (108 152) (59 612) 3 257 780
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
Note Six Year
months Six months ended
ended ended December
June 2015 June 2014 2014
Reviewed Reviewed Audited
R’000 R’000 R'000
Cash flows utilised by
operating activities (45 675) (26 460) (36 528)
Finance income 21 840 12 141 27 682
Finance expense (158) - (8 822)
Taxation paid (3 203) (3 908) (3 855)
Taxation received 62 - -
Cash (utilised) in
operations (27 134) (18 227) (21 523)
Cash flows utilised by
investing activities
Acquisition of property,
plant and equipment (392 842) (314 282) (709 327)
Acquisition of intangible
assets (939) - (7 827)
Proceeds on disposal of
property, plant & equipment - - 138
Net cash outflow from
investing activities (393 781) (314 282) (717 016)
Cash flows from financing
activities
Interest-bearing borrowings
raised - 1 066 250 2 125 523
Interest-bearing borrowings
repaid - (1 063 000) (1 022 460)
Payment of transaction cost (24 300) - -
Net cash inflow from
financing activities (24 300) 3 250 1 103 063
Net (decrease)/increase in
cash and cash equivalents (445 215) (329 259) 364 524
Cash and cash equivalents
at the beginning of the
period 1 229 673 865 149 865 149
Cash and cash equivalents
at the end of the period 784 458 535 890 1 229 673
Cash at end of year
comprises:
Cash balances 623 654 374 587 1 066 094
Less: Interest accrued (6 537) (949) (3 762)
Cash and cash equivalents 617 117 373 638 1 062 332
Restricted cash 167 341 162 252 167 341
Cash at the end of the
period 784 458 535 890 1 229 673
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION
For the six months ended 30 June 2015
1. Reporting entity
Wesizwe is a company domiciled in the Republic of South Africa.
The condensed consolidated interim financial information of the
Company as at 30 June 2015 comprises the Company and its
subsidiaries (together referred to as the “Group”). The
consolidated financial statements of the Group for the year
ended 31 December 2014 are available at www.wesizwe.com.
2. Statement of compliance
The condensed consolidated interim financial statements are
prepared in accordance with International Financial Reporting
Standards (IAS) 34 Interim Financial Reporting, the SAICA
Financial Reporting Guides as issued by the Accounting Practices
Committee and Financial Reporting Pronouncements as issued by
Financial Reporting Standards Council and the requirements of
the Companies Act of South Africa. The condensed consolidated
interim financial statements were approved by the Board on
23 September 2015. The financial statements have been prepared
under the supervision of the Finance Director, Mr W Ma.
3. Significant accounting policies
The accounting policies applied in the preparation of these
condensed consolidated interim financial statements are in terms
of International Financial Reporting Standards and are
consistent with those applied in the previous annual financial
statements.
4. Estimates
The preparation of the interim financial information requires
management to make judgements, estimates and assumptions that
affect the application of accounting policies and the reported
amounts of assets and liabilities, as well as income and
expense. Actual results may differ from these estimates.
Except as described below, in preparing the condensed
consolidated interim financial information, the significant
judgements made by management in applying the Group’s accounting
policies and the key sources of estimation are consistent with
those that applied to the consolidated financial statements for
the year ended 31 December 2014.
During the six months ended 30 June 2015 management reassessed
its estimate in respect of the available-for-sale financial
asset (note 7).
5. Going concern
The Group’s cash resources at the reporting date of R624 million
(June 2014: R375 million) together with the available drawdown
facility from the loan funding secured from CDB are sufficient,
based on current budgets, to conduct operations and develop the
Bakubung Platinum Mine Project (BPM) up to the first quarter of
2017.
6. Property, plant and equipment
During the period under review an amount of R528 million was
capitalised to property, plant and equipment as part of the
activities to develop the mine and related construction
activities.
At the reporting date, property, plant and equipment consisted
of the following categories of assets:
Property, Construction
plant and Work-in- Mineral
equipment progress Rights TOTAL
R’000 R’000 R'000 R'000
Opening balance 58 974 3 003 472 1 057 729 4 120 175
Acquisitions during
the period 4 884 522 642 - 527 526
Depreciation (3 021) - - (3 021)
Closing balance 60 837 3 526 114 1 057 729 4 644 680
No additions have been made in respect of mineral rights during
the period under review.
7. Available-for-sale financial asset
Six Six
months months Year
ended ended ended
June June December
2015 2014 2014
Reviewed Reviewed Audited
R’000 R’000 R'000
Opening Balance 788 700 - -
Reclassified to
available-for-sale
financial asset - - 761 000
(Loss)/gain included in
OCI
- Fair value
adjustment (160 700) 27 700
Closing balance 628 000 - 788 700
The group currently holds 17.1% of Maseve Investments 11 (Pty)
Ltd (“Maseve”). The available-for-sale financial asset is
classified as a level 3 fair value as the fair value is
determined on inputs not based on observable market data. The
fair value of the unlisted equity securities are based on the
discounted cash flows method. The valuation model considers the
present value of estimated future cash flows, discounted using a
risk-adjusted discount rate.
The significant unobservable inputs are:
Six months Year ended
ended December
June 2015 2014
Reviewed Audited
US$ exchange rate (ZAR) up to 11.57 – 10.54 –
2019 11.84 11.62
US$ exchange rate (ZAR) long-
term 11.60 11.62
1 210 – 1 385 –
Pt price (US$/oz) up to 2019 1 504 1 714
Pt price (US$/oz) long-term 1 619 1 714
Pd price (US$/oz) up to 2019 800 – 927 859 – 1 016
Pd price (US$/oz) long-term 1 024 1 016
1 199 – 1 320 –
Rh price (US$/oz) up to 2019 1 900 2 423
Rh price (US$/oz) long-term 2 438 2 423
1 178 – 1 200 –
Au price (US$/oz) up to 2019 1 227 1 358
Au price (US$/oz) long-term 1 282 1 358
Pre-tax Discount rate/Weighted
Average Cost of Capital (%)
(Real) 14.3 14.91
Sensitivity analysis on the fair value of the investment in
Maseve:
Six months Year ended
ended December
June 2015 2014
Reviewed Audited
R’000 R’000
10% increase in the US$
exchange rate 264 400 209 300
10% decrease in the US$
exchange rate (272 900) (213 200)
10% increase in the platinum
price 171 400 137 800
10% decrease in the platinum
price (176 100) (138 600)
8. Investment in equity-accounted investee
Six Six
months months
ended ended Year ended
June June December
2015 2014 2014
Reviewed Reviewed Audited
R’000 R’000 R'000
Opening balance - 920 750 920 750
Share of (loss)/profit
of equity- accounted
investee - 176 (194)
Loss on adjustment of
value in interest in
equity-accounted
investee - - (159 556)
Investment in equity-
accounted investee
Reclassified to
available-for-sale
financial asset - - (761 000)
Closing balance - 920 926 -
As at 30 September 2014, the group lost significant influence on
Maseve and discontinued reporting Maseve on the equity accounted
basis. The investment in Maseve was reclassified as an
available-for-sale financial asset.
9. Restricted cash
Restricted cash covers the following guarantees:
Non-current:
- R77.6 million (December 2014: R77.6 million) in favour of
Eskom for phase 1 and phase 2 bulk power supply to the BPM;
- R57 million (December 2014: R57 million) guaranteed to Aveng
Mining Ltd for the mine shaft sinking project;
- R27 million (December 2014: R27 million current) in favour of
the Department of Mineral Resources for environmental
obligation.
Current:
- R5.7 million (December 2014: R5.7 million) as a guarantee for
a land purchase agreement.
10. Stated capital
Six
Six months Year
months ended ended
ended June December
June 2015 2014 2014
Reviewed Reviewed Audited
R’000 R’000 R’000
Authorised
2 000 000 000 no par value
ordinary shares (2014: 2 000 000
000 no par value ordinary shares) - - -
Issued
1 627 827 058 no par value
ordinary shares (2014: 1 627 827
058 no par value ordinary shares) 3 425 544 3 425 544 3 425 544
11. Taxation
Six
months Six Year
ended months ended
June ended December
2015 June 2014 2015
Reviewed Reviewed Audited
R’000 R’000 R'000
Current year - normal
taxation (796) (6) (6)
Current year - deferred
taxation (1 988) (576) (92 810)
Total (2 784) (582) (92 816)
Reconciliation of effective
tax rate % % %
Standard tax rate 28.0 28.0 28.0
Non-taxable income - - -
Non-deductible expenses 8.0 (20.7) (1.2)
Deferred tax asset not
raised 1.2 (26.8) (0.5)
Share of profit of equity-
accounted investee - 1.5 -
Fair value gain on
available-for-sale
financial asset at CGT rate
in the subsidiary - - (80.8)
Under-provision prior year - (0.2) -
Effective rate 37.2 (18.2) (54.5)
12. Review Report
These interim condensed consolidated financial statements for
the period ended at 30 June 2015 have been reviewed by KPMG Inc,
who expressed an unmodified review conclusion.
The auditor’s report does not necessarily report on all of the
information contained in these condensed financial results.
Shareholders are therefore advised that in order to obtain a
full understanding of the nature of the auditor’s engagement
they should obtain a copy of the auditor’s report together with
the accompanying financial information from the issuer’s
registered office.
13. Segment reporting
No segmental report has been produced as the Group is conducting
activities in one geological location which represents its only
business activity.
An operating segment is a component of the Group that engages in
business activities from which it may earn revenues and incur
expenses, including revenues and expenses that relate to
transactions with any of the Group’s other components. The
operating results for the Group as a whole are reviewed
regularly by the Group’s CEO to make decisions about resources
to be allocated and to assess its performance.
14. Mineral resources
There were no changes to the mineral resources for the six
months ended 30 June 2015.
15. Mine closure and environmental rehabilitation obligation
The change in the obligation is due to the time value of money
adjustment for the period of R1.5 million being recognised.
16. Subsequent events
No other material events have occurred after the reporting
period and up to the date of this report that required further
disclosure in these financial results.
17. Commitments
At 30 June 2015 the Group had commitments to the value of R785
million (December 2014: R842 million). This amount includes the
commitment in respect of the shaft sinking agreement, which
amounts to R741 million (94% of the total commitments). This
amount will be incurred over the next 3 years until June 2018,
and payments are to be made on physical progress.
18. Accruals
Included in trade and other payables is an accrual amounting to
R25.2 million relating to a loan transaction cost to be paid in
July 2015.
19. Earnings/(loss) per share
Six months Six months Year ended
ended ended December
June 2015 June 2014 2014
Reviewed Reviewed Audited
The basis of calculation
of basic earnings/(loss)
per share is:
Attributable
earnings/(loss) to
ordinary shareholders (263 203
(Rand) 4 706 456 (3 779 364) 837)
Weighted average number
of ordinary shares in 1 627 827 1 627 827 1 627 827
issue (shares) 058 058 058
Basic earnings/(loss)
share (cents) 0.29 (0.23) (16.17)
The basis of calculation
of diluted
earnings/(loss) per share
is:
Attributable
earnings/(loss) to
ordinary shareholders
(Rand) 4 706 456 (3 779 364) (263 203 837)
Weighted average number
of ordinary shares in 1 627 827 1 627 827 1 627 827
issue (shares) 058 058 058
Diluted earnings/(loss)
per share (cents) 0.29 (0.23) (16.17)
The basis of calculation
of headline
earnings/(loss) per share
is:
Attributable
earnings/(loss) to
ordinary shareholders
(Rand) 4 706 456 (3 779 364) (263 203 837)
Adjustments: - - 252 400 311
Profit on disposal of
property, plant and
equipment - - (79 588)
Gain on adjustment of
value in interest in
equity-accounted investee - - 252 479 899
Headline earnings/(loss)
(Rand) 4 706 456 (3 779 364) (10 803 526)
Weighted average number
of ordinary shares in 1 627 827 1 627 827 1 627 827
issue (shares) 058 058 058
Headline and diluted
headline earnings/(loss)
per share (cents) 0.29 (0.23) (0.66)
Commentary
1. Financial overview
As the Group is currently in development phase of the BPM, it will
not earn revenue until 2019, when the concentrator plant is brought
into production.
The profit for the six months under review is R4.7 million
(compared to a loss of R3.8 million for the same period in 2014) as
set out in the condensed consolidated statement of profit and loss
and other comprehensive income.
Administration expenses of R100.1 million (June 2014: R82.8
million) include the following:
- Depreciation and amortisation – R4.2 million (June 2014: R1.3
million);
- Professional fees – R27.4 million (June 2014: R27.5 million);
- Directors’ expenses – R7.1 million (June 2014: R6.8 million);
- Salaries and payroll related expenses – R43.7 million (June
2014: R34.0 million);
- Marketing expenses and investor relations – R1.4 million (June
2014: R1.6 million);
- Electricity and water – R10.3 million (June 2014: R8.0 million);
and
- Other administrative overheads – R6.0 million (June 2014: R3.6
million).
During the six months under review the administration expenses
increased by 20.9% compared to the corresponding period in 2014 as
a result of the ramp up of the BPM. The R527.5 million that was
capitalised to the cost of the mine, included capitalised finance
costs and capital project related costs.
The basic earnings per share for the period was 0.29 cents per
share (2014: 0.23 cents loss per share for the same period). The
headline earnings per share was 0.29 cents per share (2014: 0.23
cents loss per share for the same period).
2. Project funding
As previously reported, Wesizwe concluded and signed all Project
Financing Agreements for the US$650 million loan facility with CDB.
As at the 30th of June 2015, two drawdowns amounting to $200m have
occurred. A third drawdown on the US$650 million project loan from
CDB took place in July 2015.
3. Project update – Bakubung Platinum mine
Wesizwe is developing its 100% owned BPM on the northern section of
the western limb of the Bushveld Complex in South Africa. The mine
is expected to commence ore production early in 2017 and
concentrate by 2019. At a steady state, the mine will produce
420,000 oz of 4E platinum group metals. There has been no material
changes to the project, assets or exploration activites.
3.1. Safety and Health
Wesizwe regrets a fatality on the project on 9 April 2015, as
announced previously. The team has reviewed risk assessments,
standard operating procedures, training manuals and retrained
personnel. There has also been an added focus on increasing
supervision on certain critical tasks and shifts. The operations
team has revised the SHE management system and reporting that is
applicable to all personnel on site.
3.2. Bakubung Platinum Mine Continuous Improvement
The Wesizwe Technical team, with the EPCM and specialist
consultants, has revised the current designs and technologies as
part of continuous improvement exercises with the aim of: creating
added flexibility of the system, pull back on construction period
and increasing operating efficiencies to keep input costs low.
The Board has approved implementation of the design changes in the
shaft infrastructure with moving of infrastructure to upper levels
and reducing shaft depths. These changes are used in combination
with a decline system.
The mine layout has also been revised to create quicker access to
reef and a quicker opening up of face length to guarantee the
aggressive production build-up. The team also allowed for 50% face
length redundancy during the capital footprint development. The ore
handling system was revised adding more conveyors to replace truck
haulage for added efficiency and lower tramming costs.
A decision has been made to decentralise compressed air supply to
localised units using latest technology thus lowering the operating
costs, creating maximum compressed air power for drilling and
higher penetration rates.
Completed studies on the total mine winding plant efficiencies
resulted in recommendations for newer technology to achieve higher
availability of the system during operations.
3.3. Main shaft
The 8.5 meter diameter Main Shaft reached a depth of 770 meters
from shaft collar in the period under review with flat development
to establish levels: 69L, 72L and 77L.
The loading box flask and support has been established and the
foundations for the load cells and steel box cover during equipping
also completed.
3.4. Ventilation shaft
The Ventilation Shaft reached a depth of 770 meters from shaft
collar at the end of the review period. Further to this, flat
development on 69L, 72L and 77L towards the Main Shaft has been
extensively done and is nearing holing into the Main Shaft on 77L.
The ore pass bays on all levels to 77L has been established and
cubbies developed for raise-boring, planned for 2016 to establish
the ore handling system.
3.5. Concentrator plant
The Wesizwe Process Plant Manager has been appointed to lead the
process plant procurement and construction program.
The bulk sampling program commenced, delivering 280 tonnes of ore
from two reefs to Mintek and the bench scale tests completed for
both individual and combined reefs. Channel samples from the two
reefs taken during reef intersections in the shafts were also
analysed.
Started the procurement process to acquire the EPCM for the process
plant and the order is to be placed in September 2015 when the
final bulk sampling results are received.
3.6. Services
Mine services such as power, water and housing are critical to the
overall success of the developing project. Wesizwe is running
parallel projects in these areas to ensure the availability of
these services well within the critical path of the developing
project.
3.6.1. Power
The BPM currently has a 20MVa supply from Eskom. The available
power has de-risked the mine from a power perspective during its
development phase until early 2016. The Phase 2 power supply
project, which was initiated in 2013, will be concluded to supply
the full power requirement of 60MVa. Phase 2 power supply will come
from the new 500MVa Ngwedi substation, currently under
construction. Eskom has confirmed the national importance of the
Ngwedi substation and Wesizwe is regularly appraised of the project
progress and delivery time on the substation. Regular project
progress meetings are held between Wesizwe and Eskom, inclusive of
two other neighbouring mines under development. Wesizwe is
confident that power delivery will not be a limiting factor to the
commissioning of operations going forward.
3.6.2. Water
Wesizwe successfully signed a long term Bulk Water Supply Agreement
with Magalies Water on the 19 June 2013. The three key water supply
projects making up the Pilanesberg South Water Supply Scheme
(PSWSS) are well underway, with all contracts currently in their
implementation/construction phase. The Wesizwe portion of the total
capital cost of the Scheme is approximately R270 million, inclusive
of the cost associated with the upgrade of the Pilanesberg North
Scheme pump station. Phase 1a, the 1016mm diameter main line has
trenched 5.2km with 2.8km of pipe being laid. The 600mm pipe of
Phase 1c, under the direct control and management by Wesizwe and
Maseve has lain 1.5km of the total length of 8km. Wesizwe remains
confident that the current rate of delivery on the Water related
projects will not pose any threat to the commissioning timing of
the BPM. Wesizwe remains part of the PSWSS Project Steering
Committee, to ensure the projects are delivered on time.
3.6.3. Housing project
Wesizwe completed the feasibility study on employee housing in
August 2014. Thirteen land parcels were explored and evaluated in
the local area and the company finally decided to utilise
Friscgewaagd farm for Phase 1 of initial 801 housing units. Wesizwe
envisages a partnership with the Bakubung Ba Ratheo community in
the development of the housing estates, and the use of land within
the surface lease area of the Bakubung Mining right has been
defined through an agreement signed on the 15 August 2014. The
following activities were undertaken and completed:
- Housing policy and strategy developed and approved by EXCO and
the Board.
- Developing a financial model to facilitate the financing of
the construction of housing units and related infrastructure.
- Application for township establishment has been submitted to
Moses Kotane Municipality (MKLM) and approved by the council.
- Submission of drawings to MKLM has commenced, top structure
drawings submitted.
- RFQ (request for quote) process for bulk infrastructure
development is in progress for potential service providers.
- Various sources of funding have been approached and
applications submitted.
Wesizwe will focus on home ownership by employees as a priority,
however Phase 1 of the project will comprise only of rental stock.
Consequent phases will promote home ownership.
3.7. Project expenditure and commitments to date
Total direct project capital expenditure to the end of June 2015
was R2.3 billion. Commitments remaining as at the end of the period
were R 0.8 billion. The project is 21.27% complete relative to a
planned completion of 23.63%.
3.8. Stakeholder Relations Management
Proactive stakeholder relations management continues to be a
cornerstone of the Company’s business strategy and is at the heart
of ensuring that relationships with all stakeholders, particularly
the residents and Leaders of the local host community, are
positive. To achieve this goal, the Company continues to implement
its integrated stakeholder relations plan, which combines regular
communications messaging through a variety of platforms and
utilizing all the tools at its disposal, to ensure maximum message
traction and information flow.
During the period under review, we have continued to improve how we
measure our sustainability programs to more accurately determine
their effectiveness. We continue to engage across the various
functions in order to ensure success of the company’s
sustainability strategy and objectives.
We continue to implement our local economic development program to
facilitate the development of the surrounding communities. This is
effectively executed through the Company’s SLP commitments, which
are geared towards upliftment, poverty alleviation and sustainable
socio-economic development.
During the period under review, the following projects have had an
impact on local economic development:
- Bakubung Clinic (Health care services)
- Agricultural commercial projects (Zwartkoppies Farm)
- School infrastructure development projects
- Skills Development initiatives
4. Dividends
No dividends were declared in the current period.
Board changes
Mr William Machiel Eksteen resigned from the Wesizwe Board with
effect from 1 July 2015.
Johannesburg
29 September 2015
Sponsor:
PSG Capital Proprietary Limited
By order of the board:
Dawn Mokhobo (Chairman) Jianke Gao (Chief Executive
Officer)
Wesizwe Platinum Limited
Directors: DNM Mokhobo (Chairman)*, D Chen (Deputy Chairman)*?, J
Gao (Chief Executive Officer)?, W Ma (Financial Director)?, J Li ?,
LV Ngculu*, L Teng*?, TV Mabuza*, K Mokoka*
*Non-Executive ?Chinese
Company Secretary: V Mhlongo
Transfer Secretaries:
Trifecta Capital Services (Proprietary) Limited
31 Beacon Road, Florida North, Roodepoort, 1709
Registered address: Wesizwe House, Devcon Park, 9 Autumn Road
Rivonia Ext 3, 2128, South Africa
Date: 29/09/2015 04:35:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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